Options News
$WWE bulls triple their money
Option traders racked up large gains in World Wrestling Entertainment today. On May 24, Investitute’s market scanners identified the purchase of 5,000 October $65 calls for $3.40 and $3.50 with shares at $58.74. Open interest in the strike was only 40 contracts before the trade occurred, showing that this was a new position. Those calls […]
Option traders racked up large gains in World Wrestling Entertainment today.
On May 24, Investitute’s market scanners identified the purchase of 5,000 October $65 calls for $3.40 and $3.50 with shares at $58.74. Open interest in the strike was only 40 contracts before the trade occurred, showing that this was a new position.
Those calls traded for $12.37 today, more than 3.5 times their purchase prices. The stock rallied 26.2% in the same time period, underscoring how options can far outperform their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
WWE jumped 6.35% to $70.85 today. The media and entertainment company rallied after announcing five-year deals with Comcast’s USA Network and Fox Sports this morning.